FranchiseVerdict
Morrison Plus Property Inspections logo
FV-01683·STRONGExcellent91FDD 2022

Morrison Plus Property Inspections

Real EstateFranchising since 2017Website
Investment
$44K – $83K
34th pct Real Estate
Avg revenue
$181K
7th pct Real Estate
Royalty
7.0%
50th pct Real Estate
Units
11
15th pct Real Estate
SBA default

Bottom line

  • Total investment $44K – $83K including a $35K franchise fee, 7.0% ongoing royalty.
  • Average unit revenue of $181K/year (median $131K).
  • Rated STRONG with a risk score of 54/100.
  • Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.

Item 1 · who you're contracting with

The Franchisor

Legal entity
MORRISON PLUS FRANCHISING, LLC
Parent company
Morrison Molloy Holdings, LLC
Incorporated in
California
HQ
504 E. Route 66, Suite 102, Glendora, California 91740
Auditor
Citrin Cooperman & Company, LLP
Audited financials
Franchisor revenue
$166K
vs $177K prior year
⚠ Going-concern note
Disclosed in FDD 2022
Status as of 2022; may have been resolved in a later filing we don't yet have.

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Morrison Plus Property Inspections unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $181,012
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $44K–$83K
Working capital
$
FDD reports $500–$6K

Unlevered ROIC · per unit

35%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$24K
EBITDA margin
13.0%
Total invested
$67K
Payback
34 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Morrison Plus Property Inspections units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$217K

on $1.1M purchase

Total debt

$869K

SBA $0.5M + senior + seller note

Overview

About

Morrison Plus Property Inspections franchisees conduct residential and commercial property inspections for home buyers, sellers, and real estate professionals. Day-to-day operations include scheduling inspections, conducting on-site evaluations using specialized equipment, documenting findings, generating inspection reports, managing customer relationships, and handling billing/administrative tasks. Franchisees typically operate as solo inspectors or with a small team covering a protected geographic territory.

CEO
Duane Morrison
Founded
2017
FDD year
2022
States available
2

Item 7 · what it costs

The Vitals

Total investment
$44K – $83K
All-in to open one unit
Liquid capital
$500 – $6K
Cash you must have on hand
Franchise fee
$35K
Royalty
7.0%
Gross Revenue · typical 6–8%
Ad fund
3.0%
typical 3–5%
Total fee load
10.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$181K
Per unit, per year
Median gross sales
$131K
Item 19 type
Gross Sales
Sample size
7 units
vs category median 41 · small
Range (low → high)
$54K$438K
Cohort dispersion
Transparency
4 / 5
vs category median 0 / 5 · above
Revenue rank7th
vs Real Estate peers
Investment cost rank34th
Lower investment ranks lower (better)
Royalty rate rank50th
Lower royalty = lower percentile (better)
Unit count rank15th
vs Real Estate peers
Risk score rank20th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
11
Opened
2
Last reporting year
Closed
1
Turnover rate
9.1%
Company-owned
1
Corporate units in the system
% franchised
91%
vs corporate-owned
Multi-unit owners
1.0%
Net growth (yr3)
+11.1%
Net unit change last year
3-yr CAGR
Outlier (see FDD)
Likely small-sample artifact
2020
10+1
Franchised units
2021
9
Franchised units
2022
3
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 17 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 17 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

54
Risk · 0-100
STRONG54 / 100

Early-stage franchise with minimal unit count, undisclosed profitability metrics, and high royalty burden on sub-$400K revenue franchisees creates elevated financial risk despite protected territory and no litigation.

Score breakdown · what drove the 54 / 100 rating

  1. 01MEDNet income not disclosed in FDD Item 19 — unable to validate actual profitability claims against $181,012 average revenue
  2. 02MEDOnly 11 units system-wide with 11.1% YoY growth indicates very small, early-stage franchise with limited scale and support infrastructure
  3. 03MINORTiered royalty structure (7.0% down to 5.5%) suggests franchisor may struggle to reach profitability at lower revenue thresholds, creating incentive misalignment
  4. 04MINORAverage revenue of $181,012 falls in highest royalty bracket (7.0%) — franchisees must generate $400,000+ annually to access lower royalty rates, indicating potential earning barriers
  5. 05HIGHNo litigation disclosure combined with absence of net income figures raises transparency concerns about financial performance validation

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Zip Codes
Protected territory
Yes
Initial term
10 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
California

Item 11

Training & Operations

Classroom training
24 hrs
On-the-job training
32 hrs
POS system
HomeGauge 5
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

26 numbers

Locked
(562) 619-••••
CA
(818) 679-••••
CA
(212) 416-••••
NY

One-time purchase · CSV download · Validation questions included

FDD download

Morrison Plus Property Inspections · FDD (2022) PDF

Single-page checkout · instant download · CSV export of contacts available separately above